Employee Value Proposition – Uber

Employee Value Proposition – Uber

Introduction

According to Zaware (2019), the employee value proposition is the features of a work environment that create an appeal of working in an organization. It describes the mix of benefits, characteristics, and ways of being part of an organization’s workforce. Jha & Jha (2015) argue that employee value proposition may also be viewed as the deal between an employee and an organization that is often struck in return for an employee’s performance and contribution. The deal differentiates an organization from other organizations and characterizes the employer. Employee value proposition plays a significant role in hiring, attracting, and retaining the most talented employees. Differentiation in the competition for the best talent is important, which is why organizations focus on having the best employee value proposition. An effective employee value proposition helps an organization stand out, thus attracting talent that matches its needs. This research will review Uber’s employee value proposition for drivers to determine whether it is effective or not. The research will then identify strategies that can be used to market the organization and the job position to job seekers and the organization’s source of current job seekers. The final section will recommend the metrics that the organization can use to measure the efficacy of the recruitment message.

Effectiveness of Uber’s Employee Value Proposition

One of Uber’s employee value propositions for drivers is the promise to generate income and save idle time. The company has partnered with cities and restaurants to help drivers reach as many clients as possible. Recently, the company introduced Uber Eats, which has created more opportunities for riders who were initially spending too much time waiting for customers, particularly during rainy seasons when people prefer using cars instead of motorbikes. The second value proposition is predictable and flexible work hours. The company allows drivers to set their working hours because they can turn off the Uber app when they do not want to receive any customer requests. The third value proposition is tracking earnings. The Uber driver App can generate immediate earnings that drivers can frequently pay out. The fourth value proposition is 24/7 customer support. Uber drivers can contact support at any time if there is an issue and provide rider ratings. The fifth value proposition is the driver App that assists drivers in navigating, planning, and getting alerts. Uber also provides insurance coverage for its drivers during rides. Another value proposition is the ability to get clients at no cost. Uber drivers are also given progressive rewards based on the hours they work.

An effective employee value proposition is unique and focuses on employee needs and wants. It also represents the company’s values and makes employees feel motivated, proud, and encouraged to work hard. One of the elements of an effective employee value proposition is financial rewards such as stock options, salary, and bonuses. The second element is employment benefits such as health insurance, paid time off, parental leave, and retirement funds. The third element is career development opportunities such as leadership training, mentorship programs, technical training, travel opportunities, promotions, paid educational courses, and tuition reimbursement. The fourth element is additional non-monetary and monetary rewards and incentives such as free snacks and coffee, gym membership, work-from-home opportunities, flexible work hours, or team-building workshops. The fifth element is a positive work environment that offers recognition, autonomy, and a good work-life balance. The sixth element is statements about the organization’s goals, culture, and values, such as collaboration, communication, and positive relationships between supervisors and team members.

Uber’s employee value proposition is effective due to various reasons. To begin with, it is aligned with the company’s policies, culture, practices, and values. For instance, assuring drivers that they will gain an income and access clients at no cost is aligned with the company’s value of going to get it. The employee value proposition is also effective because it enables the company to communicate its story consistently and clearly by demonstrating how the company interacts with its drivers. The employee value proposition also includes information on how the employees will be compensated.

How I would market the organization and the job to job seekers

Marketing an organization to job seekers includes setting a good company image to attract the best talent. Therefore, it is vital to ensure that the information provided is truthful, so that job seekers join a workplace that they had already envisioned based on the information provided about the company on social media platforms and the company’s website. I would consider different strategies to market the organization and the job to job seekers based on a unique recruitment message. The main message would be, “Uber is looking for experienced drivers to join our workforce and be part of the company’s success. We are dedicated to creating as many employment opportunities as possible and maintaining high earnings for our drivers.” According to Roberson et al. (2005), recruitment practices affect job seekers’ perception of an organization and the intention to apply for a vacant position. For instance, application viewpoints of attributes such as compensation, training, and development opportunities positively impact attracting job seekers. The content of recruitment messages, especially those that provide more detailed information, may affect the job seekers’ intention to apply for the job. Recruitment messages providing detailed or explicit information lead to more favorable reactions than those with general or non-specific messages. According to the elaboration likelihood model, recruitment messages with detailed information may result in positive recruitment outcomes because job seekers receiving the message are active participants in the persuasion process as they develop cognitive responses to respond to stimuli they are exposed to (White, 2011). The specificity of a recruitment message significantly impacts job seekers’ attitudinal and cognitive reactions.

One of the strategies I would use to market the job and organization to job seekers is outlining the organization’s corporate structure and culture on the organization’s website. The second strategy is sharing the organization’s story with job applicants. The story should include the company’s history and legacy. Understanding what the organization does and how it has become successful creates passion for the job. The third strategy is personalizing the company’s storytelling. I would ensure that job seekers understand why employees stay in the company and what makes it special through employee stories on its website and social media platforms. The fourth strategy is asking employees to speak out about the company. I would create a social media campaign around employees discussing their favorite incentives. The fifth strategy is promising job seekers continuous employee development. According to Loke & Lam-Lion (2021), employees are motivated by the prospect of the company’s investment in their professional growth. I would also include stories of employees who have benefited from the company’s training and development program.

The sixth strategy is sharing videos of current employees talking about what they love about their jobs and requesting them to share them on their social media platforms. The seventh strategy is promoting our unique value proposition by informing job seekers of what is unique about our company’s workplace, our purpose, and our mission. Walker et al. (2009) argue that testimonials on employee journeys since they joined the organization and highlighting employee communities and groups can help share employee value proposition. The eighth strategy is focusing on benefits and well-being. Job seekers need to know that the company cares about their personal and professional lives to evaluate the uniqueness of an organization. The ninth strategy is creating an engaging candidate experience.

Organizations need to form a bond with job seekers early by creating a good relationship with interested candidates. Companies can build good relationships by answering job seekers’ questions about the hiring process. For instance, job seekers may request information on other relevant documents they can attach to their application or an alternative location to drop an application if they cannot access the provided location. Another strategy is communicating the organization’s efforts to create a conscious culture. I would include information on how the organization builds a positive company brand through transparent communication and transparent and flexible workplace practices and how diversity is embraced. I would also encourage employees to talk about the company with individuals in their network.

Uber’s source of current job seekers

Uber sources job seekers from the internet job banks, employee referrals, and networking. Internet job bans are recruiting sites on the internet that allow employers to review applications and determine whether a particular job seeker is fit for the job or not. Networking includes developing many personal contacts within the community or industry. An organization can network through committee memberships, associations, charity functions, and trade shows. Job seekers apply for the company’s jobs listed in the job search section. New roles are regularly added to ensure that the advertisements attract the right employees. After applying for a job, job seekers are required to talk with a source or recruiter who is a member of the Talent Acquisition team to understand the role of the advertised position and the job seeker’s experience. The talk involves reviewing a candidate’s skill set and background as they relate to the advertised role. The talk also enables the organization to understand why a job seeker is interested in it, what the job seeker knows, and their ideas for development. Job seekers are also required to talk with a hiring manager to ask comprehensive role-specific questions. The company uses the situation, ask and result method to answer the questions and focus on data that can help the organization determine whether the job seeker is the right candidate for the job or not. The job seeker then meets cross-functional colleagues and the team he or she will be working with. The team asks questions about the job seeker’s core skills required to succeed.

Recommended metrics to measure the efficacy of the recruitment message

Measuring the efficacy of the recruitment message is important because it gives the organization an idea of whether the recruitment message will help attract the best talent or not. One of the metrics I would recommend for measuring the efficacy is time to hire. According to Schrader (2019), time to hire enables the organization to determine the days spent between the beginning of the recruitment process and when the candidate is hired. The metric focuses on tracking the speed with which the suitable candidates move within an organization’s hiring process after they have applied, allowing the analysis of the performance of the recruitment team. Improving the time-to-hire metric implies reducing the time spent to fill a position. In cases where the most talented people are not in the market in 10 days, time to hire also means that a shorter hiring process gives the company a better chance of attracting and hiring the best candidate. The best way to optimize this metric is by breaking down the hiring process and measuring how much time it takes to move candidates from one stage to the next.

The second metric is the cost per hire. This metric focuses on managing and calculating the money spent on recruitment. It lets the organization know the average amount of money it spends to hire new candidates. It incorporates all costs related to purchasing equipment, recruitment, administrative costs, onboarding, and benefits. It can vary based on variables such as the size of the company, the vacant position’s seniority, and the number of recruitment avenues used. Calculating cost per hire requires getting a sum of all external and internal recruitment costs and dividing them by the total number of hires. External recruitment costs include expenses related to external candidates and vendors, signing bonuses, and the costs incurred in relocation. Internal recruitment costs include all costs associated with the recruitment department, such as the salaries paid to recruiters, fixed costs related to infrastructure, interviews, and employee referral programs. The third metric is qualified candidates per opening. According to Blokdyk (2018), a qualified candidate is any individual who passes the job application screening process and progresses to the next stage in the recruitment process. Organizations need to ensure that they are not attracting unfitted candidates because this could make it hard to fill a vacant position. Reviewing the organization’s advertising and sourcing methods is important to get more qualified candidates to apply for a vacant job position. The company also needs to understand the roles it is hiring for, define the correct job specifications, expand the search for passive candidates to various social networks, and spend more money and resources on the most effective channels.

The fourth metric is the effectiveness of sourcing channels. This metric includes the performance of the various channels, such as social media platforms or job boards used to advertise job openings, allowing the company to verify the most effective channels and those that are not working. Blokdyk (2018) argues that understanding the most effective sources of talent for an organization ensures the best return on investment on time and the money spent on recruitment. Organizations need to tag candidates based on the source when they submit their applications. The fifth metric is the quality of hire. This metric focuses on measuring the value new recruitment brings to a company. Hiring the best employees translates to less turnover, better culture, productivity, and general success. The organization can use quantifiable recruitment metrics, which include the ratings of hiring managers, customer satisfaction, retention and turnover, and sales quota. Improving the quality of recruitment requires aligning leadership to define the factors making a quality hire at the company and setting the strategies to help the company hire the right people.

References

Blokdyk, G. (2018). Recruiting metrics, a complete guide. 5starcooks.

Jha, S., & Jha, S. (2015). Leveraging employee value proposition for organizational effectiveness. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2586380

Loke, R., & Lam-Lion, R. (2021). A company’s corporate reputation through the eyes of employees measured with sentiment analysis of online reviews. Proceedings of the 10th International Conference on Data Science, Technology and Applications. https://doi.org/10.5220/0010620600002993

Roberson, Q. M., Collins, C. J., & Oreg, S. (2005). The effects of recruitment message specificity on applicant attraction to organizations. Journal of Business and Psychology, 19(3), 319-339. https://doi.org/10.1007/s10869-004-2231-1

Schrader, C. (2019). Recruiting analytics. Digitalisierung im Recruiting, 41-50. https://doi.org/10.1007/978-3-658-25885-6_4

Walker, H. J., Feild, H. S., Giles, W. F., Armenakis, A. A., & Bernerth, J. B. (2009). Displaying employee testimonials on recruitment web sites: Effects of communication media, employee race, and job seeker race on organizational attraction and information credibility. Journal of Applied Psychology, 94(5), 1354-1364. https://doi.org/10.1037/a0014964

White, H. A. (2011). Elaboration likelihood model. Oxford Bibliographies Online Datasets. https://doi.org/10.1093/obo/9780199756841-0053

Zaware, N. (2019). Effective human resource management with employee value proposition. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3819178

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Directions
Select an organization, either where you work or one you are interested in, AND have not used in past course research and/or papers.

Identify the Organization’s Employee Value Proposition. (Watch the following video for an example of an EVP @ Dell):

After identifying the Employee Value Proposition, select a job within the organization and do the following:
1-Evaluate whether you think the EVP is effective. Use ‘How to Develop an Employer Value Proposition’ on pages 256-257 as a guide.
2-Identify how you would market the organization and the job to job seekers, including a short (phrase to a sentence or two) recruitment message.
3-Identify where the organization is sourcing for current job seekers. If unable to determine, discuss where they would source job seekers. Do you have any other recommendations for where to source applicants?
4-What metrics would you recommend using to measure the efficacy of the recruitment message?